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Strategic MarketStrategic MarketPlanning:Planning:

Take the Big PictureTake the Big Picture

Chapter TwoChapter Two

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Three Levels of Business PlanningThree Levels of Business Planning

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Strategic PlanningStrategic Planning

Functional PlanningFunctional PlanningOperational PlanningOperational Planning

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Strategic Planning Step 1:Strategic Planning Step 1:

Define the MissionDefine the Mission Key questions in determining the mission:Key questions in determining the mission:

What business are we in?What business are we in?

What customers should we serve?What customers should we serve?

How do we develop firms capabilities andHow do we develop firms capabilities and

focus its efforts?focus its efforts?

Mission statementMission statement

A formal document that describes the firmsA formal document that describes the firmsoverall purpose and what it hopes to achieveoverall purpose and what it hopes to achieve

in terms of its customers, products, andin terms of its customers, products, and

resourcesresources

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Step 1: Define the MissionStep 1: Define the Mission

Examples of mission statementsExamples of mission statements

MADD:MADD: to stop drunk driving, supportto stop drunk driving, support

the victims of this violent crime, andthe victims of this violent crime, andprevent underage drinking.prevent underage drinking.

National Book Swap:National Book Swap: to become theto become the

nations largest book club and in thenations largest book club and in the

process bring a lifetime of readingprocess bring a lifetime of reading

material to every American.material to every American.

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More on Mission StatementsMore on Mission Statements

Had XeroxcontinuedHad Xeroxcontinuedto define theirto define theirmission in terms ofmission in terms of

producing copyproducing copymachines instead ofmachines instead ofproviding documentproviding documentsolutions, todayssolutions, todays

digital age woulddigital age wouldhave made theirhave made theirproduct and firmproduct and firmobsolete.obsolete.

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Step 2: Evaluate the InternalStep 2: Evaluate the Internal

and External Environmentsand External Environments Situational analysisSituational analysis

An assessment of a firms internal andAn assessment of a firms internal and

external environmentsexternal environmentsInternal environmental assessment:Internal environmental assessment:

identifies the firms strengths andidentifies the firms strengths and

weaknessesweaknesses

External environmental assessment:External environmental assessment:identifies opportunities and threatsidentifies opportunities and threats

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Internal EnvironmentInternal Environment

ControllableControllable

elementselements

inside a firminside a firmthat influencethat influence

how well thehow well the

firm operatesfirm operates

SouthwestAirlines employees reflectSouthwestAirlines employees reflect

the Southwest Spirit and arethe Southwest Spirit and are

considered a key strength of the firm.considered a key strength of the firm.

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External EnvironmentExternal Environment

Elements outside the firm that mayElements outside the firm that may

affect it either positively or negatively.affect it either positively or negatively.

The external environment is global andThe external environment is global andrequires consideration of:requires consideration of:

Legal/political/ethical trendsLegal/political/ethical trends

Economic trendsEconomic trends

Competitive trendsCompetitive trends

Technological trendsTechnological trends

Sociocultural trendsS

ociocultural trends

Visit

Trendwatching.com

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Trends Present OpportunitiesTrends Present Opportunities

RecentRecentsocioculturalsociocultural

trends influencingtrends influencingfood marketingfood marketingstem from anstem from anobesity epidemic inobesity epidemic in

the U.S. andthe U.S. andconsumer desiresconsumer desiresfor low fat,for low fat,and organic foodsand organic foods

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SWOT AnalysisSWOT Analysis

An analysis of an organizationsAn analysis of an organizations

strengthsstrengths (S)(S) and weaknessesand weaknesses (W)(W) andand

the opportunitiesthe opportunities (O)(O) and threatsand threats (T)(T) ininthe external environmentthe external environment

SWOTSWOTenables the firm to developenables the firm to develop

strategies that maximize strengths andstrategies that maximize strengths and

capitalize upon opportunitiescapitalize upon opportunities

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Example of a Partial SWOTExample of a Partial SWOT

Analysis for McDonaldsAnalysis for McDonalds

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Example of a Partial SWOTExample of a Partial SWOT

Analysis for McDonaldsAnalysis for McDonalds

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Step 3: Set OrganizationalStep 3: Set Organizational

or SBU Objectivesor SBU Objectives Organizational/SBU Objectives:Organizational/SBU Objectives:

What the firm hopes to accomplish withWhat the firm hopes to accomplish with

longlong--range business planrange business plan Need to be specific, measurable,Need to be specific, measurable,

attainable and sustainableattainable and sustainable

May be financially focused, or focused

May be financially focused, or focusedon other factors such as satisfactionon other factors such as satisfaction

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Step 4: Establish the BusinessStep 4: Establish the BusinessPortfolioPortfolio

Business portfolio:Business portfolio:

The group of different products orThe group of different products or

brands owned by a firm and havingbrands owned by a firm and havingdifferent incomedifferent income--generating and growthgenerating and growth

capabilitiescapabilities

Portfolio analysisPortfolio analysis

Assesses the potential of a firms SBUsAssesses the potential of a firms SBUs

BCG growthBCG growth--market share matrixmarket share matrix

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Figure 2Figure 2--33Boston Consulting Group (BCG) MatrixBoston Consulting Group (BCG) Matrix

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Stars Can Be Grown or AcquiredStars Can Be Grown or Acquired

The recentThe recentacquisition ofacquisition ofMarvel Comics willMarvel Comics willmost likely add tomost likely add tothe entertainmentthe entertainmentcompanys stablecompanys stable

of starsof stars

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Step 5: Develop Growth StrategiesStep 5: Develop Growth Strategies

ProductProduct--market growth matrix:market growth matrix:

Characterizes different growthCharacterizes different growth

strategies according to type of marketstrategies according to type of marketand type of productand type of product

Jeeps productJeeps productdevelopmentdevelopment

strategy offersstrategy offers

different vehiclesdifferent vehicles

for different needsfor different needs

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Figure 2Figure 2--44ProductProduct--Market Growth MatrixMarket Growth Matrix

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Strategic PlanningStrategic PlanningFunctional PlanningFunctional PlanningOperational PlanningOperational Planning

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Marketing PlanningMarketing Planning

Step 1: Perform a situation analysisStep 1: Perform a situation analysis

Builds on SWOT; identifies howBuilds on SWOT; identifies howenvironmental trends affect theenvironmental trends affect themarketing planmarketing plan

Step 2: Set marketing objectivesStep 2: Set marketing objectives

Specific to the firms brands and otherSpecific to the firms brands and other

marketing mixmarketing mix--related elementsrelated elements States what the marketing functionStates what the marketing function

must accomplish if firm is to achieve itsmust accomplish if firm is to achieve itsoverall business objectivesoverall business objectives

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Marketing Planning: Step 3Marketing Planning: Step 3

Develop marketingDevelop marketing

strategies to achievestrategies to achieve

marketing objectivesmarketing objectives Select targetSelect target

market(s) where themarket(s) where the

firms offerings arefirms offerings are

best suitedbest suited

Develop marketingDevelop marketing

mix strategiesmix strategies

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Marketing Mix StrategiesMarketing Mix Strategies

Product strategies:Product strategies:

Include product design, packaging,Include product design, packaging,

branding, support services, andbranding, support services, andproduct variations and featuresproduct variations and features

Pricing strategies:Pricing strategies:

Include setting prices for finalInclude setting prices for final

consumers, wholesalers, andconsumers, wholesalers, and

retailers based on costs, demand,retailers based on costs, demand,

or competitors pricesor competitors prices

FirstFlavorVideo

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Marketing Mix StrategiesMarketing Mix Strategies

Promotion strategies:Promotion strategies:

Advertising, salesAdvertising, sales

promotion, publicpromotion, public

relations, directrelations, directmarketing, personalmarketing, personal

sellingselling

Distribution (place)Distribution (place)

strategies:strategies:

How, when, and whereHow, when, and where

the product is availablethe product is available

to targeted customersto targeted customers

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Step 4: Implement and ControlStep 4: Implement and Controlthe Marketing Planthe Marketing Plan

Control:Control:

Measuring actual performance,Measuring actual performance,comparing performance to thecomparing performance to theobjectives, making adjustmentsobjectives, making adjustments

Marketing metrics:Marketing metrics:

Return on marketing investment (ROMI)Return on marketing investment (ROMI)

Action plans:Action plans: Support plans that guide the executionSupport plans that guide the execution

and control of marketing strategies atand control of marketing strategies atthethe operational leveloperational level

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Strategic PlanningStrategic Planning

Functional PlanningFunctional PlanningOperational PlanningOperational Planning

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Operational Planning:Operational Planning:

DayDay--toto--Day Execution of PlansDay Execution of Plans At the operational level, plans focus onAt the operational level, plans focus on

the daythe day--toto--day execution of theday execution of the

marketing planmarketing plan Created by firstCreated by first--line managersline managers

Cover short time framesCover short time frames

Marketing metrics gaugeMarketing metrics gauge

successsuccess